Creativity AT Best Technologies IPO

About Creativity At Best Technologies IPO

The offer consists of a fresh issue component. The fresh issue will include 58,90,000 equity shares. The total number of shares and aggregate amount are yet to be finalised. The price band is TBA. The lot size is TBA.

The opening date is TBA. The closing date is TBA. The listing date is TBA. The allotment date is TBA. The credit of shares to the demat account is TBA. The initiation of refunds is TBA.

Creativity At Best Technologies Limited is engaged in providing logistics solutions tailored to meet the requirements of their customers/clients. They operate as a third-party logistics (3PL) service provider, focusing primarily on intra-city logistics solutions. They offer customised services as per the requirements of their customers, including First-Mile, Middle-Mile, and Last-Mile delivery. Their primary goal is to bridge the gap between businesses and their customers by providing efficient, reliable, and timely logistics solutions. In managing their operations, they maintain a fleet of leased vehicles from four different vendors to ensure flexibility and reliability in their service delivery.

Objectives of Creativity At Best Technologies IPO

• Funding the capital expenditure for setting up warehouses, delivery hubs and rapid delivery centres in various parts of India.
• Funding the working capital requirements of the company.
• To meet the general corporate purposes.
• To meet the issue expenses.

Industry Outlook

The Indian logistics sector is one of the largest in the world and presents a huge addressable opportunity. The sector is critical for the country's economic growth as it connects various elements of the economy and consists of transportation, warehousing, and other supply chain solutions ranging from suppliers to end customers.

The industry is characterised by dynamism, undergoing rapid evolution to meet escalating demands. Technological advancements, infrastructure enhancements, and governmental initiatives, including GST implementation and the National Logistics Policy (NLP), are precipitating substantial transformations within the sector. Digitalisation, augmented connectivity, and the adoption of cutting-edge innovations such as radio-frequency identification (RFID) and global positioning system (GPS) are bolstering operational efficiency while mitigating costs. Furthermore, the surge in e-commerce activities and international trade is propelling demand for streamlined logistics solutions. Despite persistent challenges such as infrastructural deficits and regulatory intricacies, the industry stands poised for significant expansion, presenting domestic and international entities with opportunities to flourish within India's burgeoning market.

With its pivotal role in driving economic progress by facilitating the efficient movement of goods and services across the supply chain, the logistics sector contributes around 13–14% to GDP and provides livelihoods for more than 22 million people. It enables timely delivery, decreases costs, and enhances competitiveness, which is crucial for thriving businesses. Logistics boosts productivity and trade by improving connectivity infrastructure and adopting innovative technologies, thereby stimulating economic growth.

Company Information

Creativity At Best Technologies Limited is engaged in providing logistics solutions tailored to meet the requirements of their customers/clients. They operate as a third-party logistics (3PL) service provider, focusing primarily on intra-city logistics solutions. They offer customised services as per the requirements of their customers, including First-Mile, Middle-Mile, and Last-Mile delivery. Their primary goal is to bridge the gap between businesses and their customers by providing efficient, reliable, and timely logistics solutions. In managing their operations, they maintain a fleet of leased vehicles from four different vendors to ensure flexibility and reliability in their service delivery.

They also provide warehousing solutions including inventory control, order management, and storage management services. Moreover, the company also manages client-specific warehouses/delivery hubs at multiple locations across the country. Their warehouses are mainly located in North India while their delivery hubs are located PAN India.

Strengths of Creativity At Best Technologies IPO

• Asset-light business model : They operate their business primarily on the basis of an "asset-light" business model which allows flexibility and scalability in operations and high capital efficiency. This model offers a variety of flexible, scalable solutions. An "asset-light" business model also helps them reduce their capital expenditure requirements, mitigate the effects of operational risks relating to maintenance costs and depreciation, in addition to reducing the effect of any risks emanating from changes in laws and regulations.

• Long-standing client relationships across multiple verticals : The company enjoys long-standing relationships with their customers. These long-standing relationships are the result of their commitment to quality, timely delivery, etc. Over the period of a decade, they believe they have gained invaluable experience in assisting their customers by providing them tailored and customised services, efficiently utilising their capabilities, equipment, and materials, and thereby constantly improving their offerings to meet their needs.

• Last-Mile delivery USP : Their unique selling proposition (USP) lies in their ability to execute efficient last-mile delivery services. By strategically optimising their logistics network of warehouses, delivery hubs and delivery points, they ensure swift and reliable delivery of goods to their customers' doorsteps. They maintain a commitment to punctuality, reliability, and customer-centricity, ensuring timely delivery.

Risks of Creativity At Best Technologies IPO

• Dependence on third parties to acquire vehicles : They rely on third parties, i.e., their riders and vendors, for renting the vehicles used in the transportation/delivery of goods. Dependence on external parties for vehicles increases the likelihood of encountering service disruptions, inconsistencies in quality, and potential disputes. Furthermore, market volatility, such as fluctuations in fuel prices, poses challenges to managing costs and maintaining profitability. Their limited control over assets may affect their ability to uphold quality standards, adhere to maintenance schedules, and optimise asset utilisation, potentially compromising customer satisfaction.

• Dependence on Indian road network : The delivery services they provide are dependent on the road network in India. There are various factors which affect road transport such as political unrest, bad weather conditions, natural calamities, road construction, road quality, regional disturbances, fatigue or exhaustion of drivers, improper conduct of drivers, accidents or mishaps, and negligence. Although they undertake various measures to avoid or mitigate such factors to the extent possible, some of these could cause extensive damage and affect their operations and/or the condition of their vehicles, thereby increasing their operational costs. Also, any such interruption or disruption could cause delays in the delivery of goods to their destination and/or damage to transported goods. In addition, any prolonged or significant downtime of their transportation vehicles or related equipment caused by unforeseen circumstances may cause major disruptions to their operations. In the event they are affected by such prolonged and significant downtime of their vehicles or equipment, their operations and financial performance may be materially and adversely affected.

• Changing regulations in India : The regulatory environment in which they and their key customers operate is evolving and subject to change. The Government of India may implement new laws or other regulations that could affect the logistics industry or the sectors they serve, which could lead to additional compliance requirements. Additional compliance requirements could increase their costs or otherwise adversely affect their business, financial condition, and results of operations. Furthermore, the manner in which additional requirements will be enforced or interpreted could lead to uncertainty in their operations and adversely affect them.

Anchor Investor Bidding Date: TBA

Registrar: KFin Technologies Limited

Book Running Lead Managers: Narnolia Financial Services Limited

Business Model of Creativity At Best Technologies IPO

The company earns its revenue through the following: Sales of services, i.e. intra-city logistics services, which include transportation and warehousing services, which further include First Mile, Middle Mile, and Last Mile operations. These services encompass the movement of goods starting from their initial pickup (First Mile), passing through intermediate transit (Middle Mile), and concluding with final delivery (Last Mile).

Company Growth Trajectory of Creativity At Best Technologies IPO

The company's total income for the period that ended 31 March 2024 stood at ₹248.25 crores, whereas in the financial year 2022-23, it stood at ₹258.84 crores, representing a decrease of 4.09%.

Net revenue from operations for the period that ended 31 March 2024 stood at ₹245.81 crores, whereas in FY 2022-23 it stood at ₹258.62 crores, representing a decrease of 4.95%. Other income for the period that ended 31 March 2024 stood at ₹2.44 crores, whereas in FY 2022-23 it stood at ₹0.22 crores, representing an increase of 1,021.22%.

The restated profit after tax for the period that ended 31 March 2024 stood at ₹16.59 crores, whereas in FY 2022-23 it stood at ₹1.27 crores, representing an increase of 1,202.79%.

How to check allotment status of Creativity At Best Technologies IPO?

Visit the Registrar's Website

To check the IPO allotment status for Creativity At Best Technologies Limited IPO, visit the official website of KFin Technologies Limited, the registrar for this IPO. On their IPO allotment status page, enter your Permanent Account Number (PAN), application number, or Demat account ID. Then, click the ‘Submit’ button to view your allotment status. Ensure you have the necessary details ready for a quick and accurate check.

Check on the Bombay Stock Exchange Website

The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page.

On the BSE IPO page, follow these steps

• Select 'Equity' from the dropdown menu
• Choose 'Creativity At Best Technologies Limited' in the next dropdown
• Enter your application number
• Enter your PAN
• Click 'Search' Your Creativity At Best Technologies Limited IPO allotment status will be displayed.

Verify on the National Stock Exchange Website

The National Stock Exchange (NSE) has an IPO Bid Verification module. Use this to check Creativity At Best Technologies Limited IPO allotment status.

Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'. On the NSE IPO Bid Verification page, enter:

• Application number
• PAN Then click 'Submit'. Your Creativity At Best Technologies Limited IPO bid and allotment details will be displayed.

How to apply for Creativity At Best Technologies IPO?

• Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.